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Ready to Start a Sex Toy Business? Use These 5 Initial Steps!

 While starting a business is riskier than joining in an already established company, some just have the entrepreneur bent.

Research has shown that entrepreneurs regard building their business as their fun. Perhaps that’s why they work 18 hours each day. Also keeping them in the go-go startup environment is the fact that they’d rather take a pillow to the head than enter a bland corporate cubicle farm. It takes all kinds, and it takes another kind all together to start a sex toy business.

A sex toy business involves lower overhead than most. Because manufacturers operate overseas, cost of goods is reasonable. Getting these products to the American audience requires having parties or building an ecommerce site. With Americans’ sexual values becoming more liberal, the future of the sex toy business is bright. Follow these steps to start your sex toy business.

  1. Consider Starting Small

Starting small ensures your capital lasts long enough to spread the word about your business. Starter kits include sexual products like lubricants, dildos and vibrators. Clearly, these appeal to women, but men buy them for girlfriends as well. They are also widely accepted, lacking the squeamishness that comes from the more hard-core products. Review both U.S. and international manufacturers for prices.

CAUTION: If you do start with a website, keep in mind that you can’t sell your products at a price lower than what your manufacturer, distributor or representative sells them for.

2.  Pick Your Niche

With the extent of sex toys available in the market today, finding a niche could be your quickest route to profit. Consider certain angles like all-natural products or essential oils to corner a small but under-served market. Expand from there.

For example, if you want to sell nontoxic and eco-friendly sex toys, you can choose the rechargeable, wood and glass or 100% medical grade silicon sex toys. Themes like LGBTQ, BDSM and others help consumers understand when they’ve arrived at the destination that meets their needs precisely.

  1. Use Private Labeling to Build Your Brand

Most sex toy businesses put their unique, quality logos on the sex toys they purchase from manufacturers and distributors. By lending an air of exclusivity, private labeling leads to higher margins and loyal customers.

Some manufacturers have a selection of pre-made designs that can save you money, but a professional design from a graphic artist could result in more profits. Manufacturers and distributors are accustomed to integrating your design files with their products and packaging. Creating a unique brand is one of the most fun parts of becoming an entrepreneur.

bare-chested man ready to start a sex toy business

  1. Build Your Authority by Educating Yourself on the Industry and Sexuality in General

People are far more comfortable buying from companies with strong, informed leadership at the helm. By empowering yourself, you empower and enlighten your customers. They will appreciate you for it.

Consider how you will create guidelines and provide sex education, an aspect of life that is only touched on superficially in American high schools and very inadequately in magazines. Follow product trends as well so that you can bring the most useful devices to your target market before they hear about it from other vendors.

Most importantly, learn about legal issues you might encounter. More legal entanglements exist in this industry than most.

  1. Think About Business Location

Products that display naked body parts and sex toys have a way of raising the ire of consumers in certain areas. Groups may have managed to make businesses in the sex toy and sex service industry illegal in certain states, counties and cities.

Start by checking with your city’s planning department. Then go to the state level to explore whether you need permits to run your business. You‘ll need to note the specifications required for getting the permit. A Sandy Springs Georgia ordinance, for instance, reads that any “device designed or marketed as useful primarily for the stimulation of human genital organs is obscene material.” The whole state of Alabama has outlawed sex toys. If your ecommerce business exists in an area where sex toys are outlawed, your only choice could be moving.

  1. Set Up Revenue Collection Methods

Those with ecommerce businesses and even those without will increase sales and profits if they accept credit cards. Today, 80% of consumers use debit and credit cards to pay for items they purchase. Just 17% use cash and 3% use checks. Businesses operating strictly on the internet—ecommerce—must take some form of plastic to make any sales whatsoever.

Know now that lenders consider the sex toy and any adult-related business to be “high-risk.” It’s not the end of the world, just the news that you will need to pay a point or two higher than your entrepreneurial medical claims, senior services or accounting services counterparts.

First Financial helps business owners get the cash they need at the most competitive rates. Thrilled to be operating in the low-cost, fast-moving digital era, we set up and help you manage your business loan or merchant services account 100% online. A+ rated First Financial specializes in high-risk merchant accounts. Simply click here to apply and you’ll be able to start taking credit cards within 48 hours!

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